Local Government Pension Scheme

siamese0109

Is anyone else a member of this? There are a lot of changes being discussed at the moment including ending the '85 year rule' which throws all my plans into disarray! Not sure if I'm reading the bumph right but it seems that my circumstances mean that I will have to pay increased contributions, will have to work till I'm 65 and for the sake of 6 months will lose out on protection of my (so-far) 27 years contributions! Is anyone else in the same situation or can anyone tell me that I've read it wrong and I'm not really about to be well and truly shafted? :mad:

Mortgage_&_debt_free

I am a member and even with the changes it is one of the best pensions available anywhere at the moment.

I would not give mine up for a £10k p.a. pay rise without a pension elsewhere.

It has built in security and inflation proofing and yes, things may change in the future but I still maintain anyone who withdraws from the scheme really doesn't understand what they're giving up. For instance my contribution will go up from 6% to 6.5% under the new regs. However, the employer is contributing the equivalent of 24-26%. Try getting that sort of free money with guarantees anywhere else.

siamese0109

I wouldn't consider withdrawing - not after so many years! I guess I'm just feeling really badly done to and I was planning on using the 85 year rule to retire at 52 but it looks like that's gone out of the window now! I think after 27years I should be entitled to what I signed up to - not to lose out by a measly 6 months! :mad:

Andy_L

Even with the rule of 85 you'd be hard pushed to retire at 52 as to go before 60 (with no actuarial reduction) you have to have your employers permission and, in the current polotical climate, they'd be unlikely to give it

Andy_L

siamese0109 wrote: »

I think after 27years I should be entitled to what I signed up to - not to lose out by a measly 6 months! :mad:

Your existing 27 years keep to the rules you signed up to. It is only future service that is affected by the changes

http://www.lgps.org.uk/latest/Phasingoutthe85yearrule.html

siamese0109

None of the benefits you accrue up to 31st March 2008 will be reduced.

However, any benefits you accrue after that date will be reduced to take account of the fact that the benefits are being drawn before age 65. The size of the reduction will depend on how many years before age 65 you draw your benefits.
If you will be aged 60 between 1st April 2016 and 31st March 2020 and meet the 85 year ruleA by 31st March 2020, please see Note C.

C. If you will be aged 60 between 1st April 2016 and 31st March 2020 and meet the 85 year rule (or meet an earlier Normal Retirement Date which some members who joined the Scheme before 1st April 1998 have under previous regulations) by 31st March 2020, the benefits you build up between 1st April 2008 and 31st March 2020 will be reduced, but the reduction will not be the full amount.

I'll reach 60 on 1st Sept 2020 so all my benefits from April 2008 will be reduced!